Pick of the Day: EUR/USD – Close Trade

Trade Adjustment: 2009-06-19 10:53

Good morning! It looks like I am short some EURUSD as the pair moved up yesterday to my entry point at 1.4000. It looks like sellers were waiting to jump in at the psychological round number and pushed EURUSD all the way down to 1.3900 – my first profit target.

I closed half of my position there to lock in profits, and adjusted my stop on my remaining position to breakeven.

With the weekend fast approaching, and shops already closed up around the world, I have decided to close my position to avoid weekend risk.

Close remaining position at market 1.3925.

1st Half: +100 pips
2nd Half: +75 pips
Total: +0.875% gain

Thanks again for checking out my blog! I hope everyone has a great weekend and see ya next week!

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Trade Idea: 2009-06-17 18:24

PoD Chart

Good evening! It’s a little late in the week, but I thought I’d share a trade idea I have on EURUSD. The pair has been trending lower and there are quite a bit of technical signals going on at the moment. Will the pair move lower?

There’s a lot going on the four hour chart, so where do I start? First, we have the pair retracing higher, currently 50%, and with stochastics signaling that the pair may not be overbought yet, the retracement may not be quite done. Also, I can see a falling triangle chart pattern forming, showing that sellers are in control at the moment. I am going to go with the short term trend lower, but at a better price.

The current sentiment is one of risk aversion. Commodities are pulling back, along with equities, so are we seeing a return to the US Dollar for safety? I think we could be, especially as we still haven’t seen concrete evidence in a turn around in economic data. Also, regardless of what the BRIC countries say, US markets are still the deepest and safest places to put assets. Unfortunately, they are the best amongst a group all hit by the financial crisis, so I don’t know if it is saying much. So, I think we will see continued US Dollar bullishness in the short term.

So, I am shorting for technical reasons and going with the trend, but hopefully at a better price (just under the 61% Fibonacci level). Here’s what I am going to do:

Short EUR/USD at 1.4000, stop at 1.4100, pt1 at 1.3900, pt2 at 1.3800

Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly.

There’s still a bit of potentially volatile economic data on the calendar before we close out the week, so stay tuned for adjustments during the upcoming European and US trading sessions!

12 comments

  1. Babysteps

    Hello pip,
    Hope u still remember me:-)
    I just in at 1.3970 and thought to check ur blog and AHA u also in at 1.40:-)
    In my view A+ setup and expecting hit pt2 and maybe more
    Anyway i’m with you.
    Good luck all

    Reply
  2. Babysteps

    Hello pip,
    Hope u still remember me:-)
    I just in at 1.3970 and thought to check ur blog and AHA u also in at 1.40:-)
    In my view A+ setup and expecting hit pt2 and maybe more
    Anyway i’m with you.
    Good luck all

    Reply
  3. Babysteps

    It suppose go down but 1.3870 can’t break and top 1.4160 can’t break.If we look on weekly bearish gartley since 2 weeks can’t take the decision and i realy get bored and i will close now with 70 pip+

    Also us index move around 80 can’t also take a decision!!
    Are we really nearing to recovery! All i see us drop and no real recovery same banks and firms problme , Us keep printing much $, unemployee %9.4 all this still exists.

    Hope we not gonna shocked by unexpecting moves!

    Reply
  4. Babysteps

    It suppose go down but 1.3870 can’t break and top 1.4160 can’t break.If we look on weekly bearish gartley since 2 weeks can’t take the decision and i realy get bored and i will close now with 70 pip+

    Also us index move around 80 can’t also take a decision!!
    Are we really nearing to recovery! All i see us drop and no real recovery same banks and firms problme , Us keep printing much $, unemployee %9.4 all this still exists.

    Hope we not gonna shocked by unexpecting moves!

    Reply
  5. PipcrawlerPipcrawler

    Hey everyone! Thanks for comments! Babysteps – of course I remember ya! I hope trading is going well for you. Larrydpipper – sign up for the email alerts, and we are starting to use twitter as well to let everyone know when there is a new blog post to the homepage. Check it out!

    Reply
  6. PipcrawlerPipcrawler

    Hey everyone! Thanks for comments! Babysteps – of course I remember ya! I hope trading is going well for you. Larrydpipper – sign up for the email alerts, and we are starting to use twitter as well to let everyone know when there is a new blog post to the homepage. Check it out!

    Reply
  7. partofit

    hi pipcrawler.. i love to see how the u trade.. so simple chart.. very simple indeed.. i wish to trade like u based on price.. what are ur settings for stoch?

    Reply
  8. partofit

    hi pipcrawler.. i love to see how the u trade.. so simple chart.. very simple indeed.. i wish to trade like u based on price.. what are ur settings for stoch?

    Reply

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